NewBank started its first day of operations with $6 million in capital. $100 million in checkable deposits is received. The bank issues a $25 million commercial loan and another $25 million in mortgages, with the following terms:

• Mortgages: 100 standard 30-year fixed-rate mortgages with a nominal annual rate of 5.25% each for $250,000.
• Commercial loan: 3-year loan, simple interest paid monthly at 0.75% per month

If required reserves are 8%, how much required reserves does the bank have? 8,000,000

Before new purchase they had 48,000,000 in excess reserves

NEW PURCHASE INFO

New Bank decides to invest $45 million in 30-day T-Bills. The T-Bills are currently trading at $4,986.70 (including commissions) for a $5,000 face value instrument. How many bills do they purchase?

9,024 bills

1. How much does the bank have in Excess Reserves after the purchase? Please answer in $s millions

2. On the next day, the bank has a $5 million withdrawal. What does it then have in total reserves? Answer in millions of dollars

PLEASE ANSWER BOTH ONE AND TWO!!!!